New Regulation A+ Rules Expand Inexpensive Capital Formation of Up to $50 Million
Many in the investment and crowdfunding community had eagerly been waiting for the Securities and Exchange Commission (SEC) to release rules to enact the provisions of Title IV of the JOBS Act. The SEC finally released its regulations in March of this year. The new rules contained a partial preemption of state securities laws which surprised many. Title IV told the SEC to liberalize the provisions of Regulation A which is an exemption to allow smaller companies to sell private securities up to an amount of $5 million. It represents a huge step forward for crowdfunding.